Dr Faessel - The Growth Engine of the 21st Century: Hyperdigitization

The Growth Engine of the 21^st Century: Hyperdigitization*

Growth to be 25% of Global GDP by 2020*

Midas Medici Group Holdings, Inc. (MMED) OTCBB $2.00

Undiscovered, undervalued and trades by appointment, but nevertheless the story (and management) has credentials... a plan and “they” are performing.

(MMED) is a green IT company that supplies mid-sized and select enterprises and institutions with leading-edge IT solutions in the fields of virtualization, cloud computing, disaster recovery and data management. (MMED) also works with utilities and other institutions to transform the electric grid through efficiencies using Smart Grid digital technologies.

In the panorama of today’s IT mosaic the magic words are: virtualization, cloud computing, data management and Smart Grid ― and (MMED) is in the middle of all the action. With three acquisitions under the company’s belt since March this team of seasoned professionals have set the (MMED) stage by gaining market share and revenue in the explosive sectors that are the centerpieces of today’s, as well as the future’s, IT growth.

Driven by the explosive growth of data and video content, memory information in the form of bits, bytes, megabytes, gigabytes, terabytes and now zettabytesthat used to be stored in physical data devices now lives virtually in the cloud where there are no limits as to size.

(MMED)’s veteran management team** has enormous operational and acquisition experience and is well-positioned to help its customers address the management of regulatory requirements, technical support and the efficiencies of access to this deluge of "information" flow.

While much of IT growth has ebbed during the recession the market for cloud, data management and virtualization is mushrooming and that growth looks to accelerate. Indeed it’s benefiting from an IT Big Bang. Just look at some of the predictions by the crème de la crème of market forecasters.

• According to Gartner, cloud infrastructure services alone are expected to grow at 35.6% CAGR from $2.4 billion to $8.1 billion by 2013.

• BCC research has forecast that the U.S. market for Smart Grid enabling technologies will grow at a compound rate of 15.3% annually, reaching $39.4 billion in 2014

• IDC estimates that worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is forecast to reach $55.5 billion in 2014, representing a compound annual growth rate (CAGR)

• Equinix predicts that the Digital Universe will grow 44 times by 2020. Astonishing growth from today’s 0.8 zettabytes to 35 zettabytes.

(MMED) has a customer base with a global reach that includes over 700 clients including many Fortune 1000 and 500 companies as well as governmental entities and academic institutions. (MMED)’s global customer base includes well-known companies and institutions such as: Pepsi, Red Hat, HP, Oracle, PBS, AT&T, Oracle, National Grid, GazProm, the International Monetary Fund and more. Their footprint encompasses active customers located in 35 states in the USA, Europe, Canada, Asia, Africa the Middle East and South America. (MMED) has proven the ability to identify, integrate and grow business and acquisition opportunities within their target markets.

Murphy Analytics expects the (MMED) valuation to reach 1.25 X revenue of approximately $53 million, over the coming 12-months implying a market cap of $66 million and has projected a 12-month price target of $7.65 based on the Murphy’s estimated total potential share count. Link to the Murphy analysis: http://www.murphyanalytics.com/uploads/MMED_Initiation.pdf

Detail regarding (MMED)’s three most recent acquisitions:

• Midas Medici acquired Consonus Technologies, Inc. 3-4-2011. Consonus is a leading provider of energy-efficient data center solutions.

• Acquired WeatherWise Holdings, Inc. 5-11-2011. As part of the merger, WeatherWise was rebranded UtiliPoint Analytics and acts in the software fields of analytical and data modeling.

• Acquired Energy Hedge Fund Center, LLC [EHFC] 6-9-2011.EHFC is a web portal and community for clients interested in hedge funds in the energy and commodity sectors.

(MMED) has stated that “they” intend to identify new areas of development and expand (MMED)’s business through an accretive acquisition high-growth model, all while maintaining an unequivocal commitment to shareholder value. While still a small company with $59 million in revenue its market cap is only $15 million―quite undervalued. All things considered (MMED) is a story and a stock to watch and perhaps take a pilot position.  I should add that recent acquisitions in this red hot sector have been priced at high multiples of revenue; some as high as 6 to 8 X revenue; this further makes the Midas Medici shares compelling.

* Equinix link to download the Gartner report:  Hyperdigitization Creates Major Opportunity for IT Services Providers.

http://www.equinix.com/platform-equinix/platform-advantages/overview/

** Mr. Baffour CEO of Midas Medici was a Managing Principal and Co-Founder of Knox Lawrence International, LLC [KLI], an energy services investment company that has completed over $600 million in acquisitions and generated over 55+% internal rate of return for investors. Prior to co-founding KLI, Mr. Baffour was an investment banker at Credit Suisse First Boston in Europe and the US, where he was directly involved in billions of dollars of M&A and financing transactions.

** Mr. Kachidza is President and CFO of Midas Medici. Prior to co-founding KLI, he was an investment banker at Merrill Lynch and JP Morgan Chase, where he was directly involved in billions of dollars of M&A and debt and equity financing transactions in the energy sector. Mr. Kachidza began his career as a project engineer at General Electric and holds a US patent for an innovative fluorescent lamp design.

Visit MMED’s comprehensive website: http://www.midasmedici.com/